The initial public offer of jewellery exporter Shree Ganesh Jewellery was subscribed 0.61 times by 16:00 IST on the first day of the issue today, 19 March 2010. The issue received bids for 71.60 lakh shares as against the issue size of 1.17 crore shares. The issue closes on 23 March 2010.
The company had received about Rs 65 crore from anchor investors, prior to the issue opening. The anchor investors include IFCI, India Max Investment Fund and Bank Muscat India Fund. These three anchor investors subscribed for 24,99,975 equity shares at Rs 260 per equity share, at lower end of the Rs 260-270 price band.
The offer comprises a fresh issue of 1.21 crore shares and sale of 21 lakh shares by private equity investor Credit Suisse PE Asia Investments (Mauritius). Credit Suisse holds a 10.99% stake or 52 lakh shares in the company.
The issue constitutes 23.52% of the fully diluted post-issue paid-up capital and the fresh issue will constitute 20% of the fully diluted post-issue paid-up capital of the company.
The firm plans to raise funds to expand manufacturing and retail operations and diversify into newer products and geographies and has planned a capital expenditure of Rs 145 crore for the upcoming fiscal year.
Shree Ganesh also plans to set up units in Dubai and Singapore and expand its export footprint into new geographies such as Europe, Australia and Africa. The Middle East, Singapore and Hong Kong are the major export markets for the firm.